Investing.com - The euro was little changed against the U.S. dollar on Friday, hovering close to a two-month low, after the release of upbeat U.S. consumer sentiment data, as concerns over the outlook for economic growth in the euro zone continued to weigh on sentiment.
EUR/USD hit 1.2690 during U.S. morning trade, the pair's lowest since September 7; the pair subsequently consolidated at 1.2716, falling 0.25%.
The pair was likely to find support at 1.2625, the low of September 7 and resistance at 1.2790, the session high.
In a preliminary report, the University of Michigan said that its index of consumer sentiment hit a five-year high in November, rising to 84.9 from a reading of 82.6 the previous month.
Analysts had expected the index to rise to 83.0 in November.
But sentiment on the euro remained fragile after Germany's Economy Ministry said that growth was likely to slow in the fourth quarter and the first three months of 2013, while the French central bank said it expected the euro zone's second-largest economy to slip into recession towards the end of 2012.
Investors were also eyeing a Greek parliament vote on Sunday on its 2013 budget. The budget must be passed to unlock a further tranche of international aid.
Earlier in the day, official data showed that industrial production in France dropped 2.7% in September, more than the expected 1% decline, after a 1.9% rise the previous month.
In Italy, industrial production tumbled 1.5% in September, compared with expectations for a 1.4% drop, after a 1.7% increase the previous month.
Markets were also jittery amid concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1 unless lawmakers can reach an agreement, which could threaten U.S. and global growth.
The single currency was higher against the pound with EUR/GBP adding 0.14%, to hit 0.7985.
Also Friday, official data showed that the U.K. trade deficit narrowed more-than-expected in September, hitting GBP8.4 billion from a deficit of GBP10 billion the previous month.
Analysts had expected the trade deficit to narrow to GBP8.9 billion in September.
EUR/USD hit 1.2690 during U.S. morning trade, the pair's lowest since September 7; the pair subsequently consolidated at 1.2716, falling 0.25%.
The pair was likely to find support at 1.2625, the low of September 7 and resistance at 1.2790, the session high.
In a preliminary report, the University of Michigan said that its index of consumer sentiment hit a five-year high in November, rising to 84.9 from a reading of 82.6 the previous month.
Analysts had expected the index to rise to 83.0 in November.
But sentiment on the euro remained fragile after Germany's Economy Ministry said that growth was likely to slow in the fourth quarter and the first three months of 2013, while the French central bank said it expected the euro zone's second-largest economy to slip into recession towards the end of 2012.
Investors were also eyeing a Greek parliament vote on Sunday on its 2013 budget. The budget must be passed to unlock a further tranche of international aid.
Earlier in the day, official data showed that industrial production in France dropped 2.7% in September, more than the expected 1% decline, after a 1.9% rise the previous month.
In Italy, industrial production tumbled 1.5% in September, compared with expectations for a 1.4% drop, after a 1.7% increase the previous month.
Markets were also jittery amid concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1 unless lawmakers can reach an agreement, which could threaten U.S. and global growth.
The single currency was higher against the pound with EUR/GBP adding 0.14%, to hit 0.7985.
Also Friday, official data showed that the U.K. trade deficit narrowed more-than-expected in September, hitting GBP8.4 billion from a deficit of GBP10 billion the previous month.
Analysts had expected the trade deficit to narrow to GBP8.9 billion in September.